- The role of diversification is to protect you from being wrong, by forcing you to invest in a manner which you do not agree with. Even if you perceive a peak in the bond market, it's important to still maintain some degree of bond holdings, in case your perception does not turn out to become reality. Betting everything on an one-year economic turnaround is not diversification.

Very good advice! Well put! You have helped bring back the perspective that caused me to look at fixed-income investments in the first place. It will still be hard to allocate hard-earned funds to an investment you feel will have problems in the not-to-distant future. Who knows though, maybe things will remain realitively constant for much longer then I think. For everyone's good, I hope not though.

I'm still going to do more research before jumping into this one. My main problem is that my window of time is closing in on me much faster then I would like, so it kinda forces me to act before maybe I feel comfortable. (I turned 60 in June). All of my investments will go to my wife to offset the drop in pension she will experience once I make the transition to "the other side of the dirt". (Down to 55%).

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.

Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.